If cryptocurrencies are only products that are trading among the wealthy, with no practical use in the real world, then there is no future in this space. Ethereum co-founder says that blockchain growth is near a “ceiling” while Bitcoin falls as the SEC announced that it is suspending two securities linked to crypto. As a result, the market fell to a 10-month low on Monday as ether, the second-largest virtual currency dropped by 11 percent. Bitcoin fell by 2.4 percent, and the total market, according to CoinMarketCap.com, shrank to $197 billion – down almost $640 billion from the January peak. Cryptocurrencies have fallen for five of the past six weeks on concerns that that broader use or adoption of digital assets will take longer then some had anticipated. Some analysts are suggesting that the market has potential but likely 5 years from now – in short, it arrived too early. It seems now that there are more and more obstacles for the market to overcome.
Vitalik Buterin told Bloomberg that the days of explosive growth in the blockchain industry are likely gone. This negative news builds around this industry just as Citigroup Inc announced that it has developed a new mechanism for trading them. The US bank has developed a product called DARs, or digital asset receipts that will enable trading by proxy without direct ownership of the underlying coins, according to so sources.
There seems to be a series of new ideas and new products for trading cryptocurrencies but these ideas have come too little too late according to some analysts. Again, others feel that the market will recover, but years from now. The view is that there will be so-called “stable coins” in the future. Tether is one such coin.
We will be updating on cryptocurrencies in the coming weeks. This market is at a crossroads but again, we feel that Darwin is visiting and only the strong coins will survive.